The MSX30 Index ended the week higher by 0.56 per cent. All sub-indices ended lower except for financial index. Industrial & service Index closed lower by 1.00 per cent and 1.30 per cent, respectively while financial index closed higher by 1.05 per cent. MSX Shariah Index closed lower by 0.18 per cent.
The Omani government is planning to increase total public spending to RO 12.1bn in the fiscal year 2022 as public revenues are expected to rise by six per cent. The estimated total public spending will be two per cent higher in 2022 over what is expected to be spent by the end of this year, the Ministry of Finance announced on Sunday. Total spending in Budget 2022 is over 11 per cent higher compared to the RO 10.8bn spending estimated in budget for 2021.
The Chairman of Oman Investment Authority (OIA) said last week that more than 110 investment projects are being implemented in 2021 and 2022 and the volume of actual investments in 2021 stood at RO 2.6bn. In 2022, the volume of spending will be RO 2.9bn through the expansion of current projects and setting up new ones. In 2022, the volume of investments in the tourism sector is expected to be RO 193m, RO 57m in the mining sector, RO 116m in the logistics sector, and RO 156m in communications and information technology. This is in addition to RO 99m in the food sector, RO 54m in fisheries, RO 1.41bn in the energy sector, RO 803m in the general services sector and RO 52m in other sectors.
Central Bank of Oman (CBO) has instructed commercial banks in the Sultanate of Oman to end the longstanding practice of offering prizes against savings deposit schemes with effect from January 1, 2022. The measure came in a circular issued by CBO Executive President Tahir Salim al Amri. Circular 1811 dated December 9, 2021, directs licensed banks to scrap prize schemes while taking steps to enhance interest rates on deposits, among other measures to boost deposit mobilization. “The Central Bank of Oman, after careful consideration and keeping in view, amongst others, the overall interests of the banking system, and ensure enhanced effectiveness of the monetary policies, has decided to withdraw the ‘Prize Scheme Linked Saving Deposits Schemes’ with effect from January 1, 2022.
Omantel disclosed that Zain Jordan, one of Zain Group (Omantel’s subsidiary) has signed an agreement for the sale and leaseback of passive tower structures and supporting facilities such as power generators, fuel tanks and protection kiosks (“towers”) in Jordan with TASC Towers company (In which Zain Group owns 25 per cent), Under this agreement, the company will sell 2,607 towers at a value of $88m. This agreement will have a positive impact on the company’s operations in Jordan and Zain Group.
The accounting gain of this transaction before Tax is expected to be approximately $50m and it will be recognized once realized.
Sohar International has acted as the financial adviser to the popular on-demand delivery service major, Akeed, on raising its equity capital from investors. Reiterating its strong market position, investor confidence and as part of its ongoing efforts to extend support to local start-ups and promote In-Country Value (ICV) within the Sultanate, this strategic initiative reflects Sohar International’s strong internal capabilities through a well-experienced team as well as a strong network and reaches to market such investment opportunities to existing and potential investors whether locally, regionally, or internationally.
The total number of guests in hotel properties of the 3 to 5-star category in the country increased 37.9 per cent to 834,255 in 9M-2021, compared to 604,940 guests for the same period of 2020. The occupancy rate increased to 35.0 per cent, according to the latest monthly statistics released by the National Centre for Statistics and Information (NCSI) compared to 27.3 per cent last year.
Total revenues of these hotels fell by 11.7 per cent to RO 59.27m in 9M-2021, compared to RO 67.2m during the same period of the previous year. [Courtesy: U-Capital]
